Analysis of 3 recent GST Notifications dated 09.06.2020

Recently, CBIC issued three notification on 09.06.2020 which deals with extension of validity of E-Way Bill, extend the period to pass order u/s 54((7) and extend the date for transition under GST on account of merger of erstwhile Union Territories of Daman and Diu & Dadar and Nagar Haveli.

NN 45/2020: The date of transition extended to 31.07.2020 (Earlier it was 31.05.2020).

• Impact:  The persons whose principal place of business or place of business was in the erstwhile Union territory of Daman and Diu or in the erstwhile Union territory of Dadra and Nagar Haveli till the 26th day of January, 2020; and is in the merged Union territory of Daman and Diu and Dadra and Nagar Haveli from the 27th day of January, 2020 onwards shall follow the special procedure regarding the ascertainment of tax period for Jan ’20 & Feb’20, deposit the tax as charged till the transition date, transfer of balance ITC till 31.07.2020

NN 46/2020: Seeks to extend period to pass order under Section 54(7) of CGST Act.

• Impact: In cases where a notice has been issued for rejection of refund claim, in full or in part and time limit for issuance of order u/s 54(5) read with section 54(7) falls during the period 20.03.2020 (inclusive) to 29.06.2020 (inclusive), in such cases the time limit for issuance of order shall be extended to 15 days after the receipt of reply to the notice from regd. person or 30.06.2020, whichever is later.

NN 47/2020: Extension of the validity period of E-Way bill generated on or before 24.03.2020 and whose validity expired on or after 20.03.2020 to 30.06.2020. (Earlier it was 31.05.2020)

• Impact: The validity period of E-way bill is determined on the basis of distance & dimensional cargo, say one day for 100 km for other than over-dimensional cargo. The vehicle which started his journey before lockdown but could not reach to its destination due to any reason, now, gets period to reach its destination without any adverse cause of action like detention & seizure.

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